the restaurant Subway’s Acquisition Of Jason’s Deli Strategy.

 

First, it’s recommended to start with the second part which is ( Competitive rational ), here you have to do a SWOT analysis for both Subway & Jason Dali and explain why based on the strengths and weaknesses or opportunities of each other they should go for acquisitions.

 

· why this Acquisition should happen?

· What’s the rationale behind it?

· How it improve both companies & objectives?

· Revenue increase? Market reputation

· Technology & operation factor that they can build on?

· Synergy ( company’s performance will increase and cost will decrease)

· Diversification ( if applicable)

· Portfolio refocus and etc..

· Taking the most of market share?

· Newer or more developed assets?

· Share gain ( buying customer base is easier than it’s own effort)

 

3- Restructure strategy

· horizontal or vertical Acquisition?

· operational level who should be the (CEO) or division manager? Should they work on the same line or jason Deli below the subway line and why? How would you approach the restructure in terms of communication, activities, HR, finance, etc on the organizational level?

· Downsizing? Reduce labor cost? Downscoping? Reduce debt cost? Leverage buyout? Emphasizing on strategic control and performance

· How would you implement that change? Bring it into reality

· Effective restructuring and friendly environment & facilities

· What would happen to the brands? To the menu? To the customer and etc

· Leadership style

· What would happen to QH buildings or offices?

· Integrate management control

· Inter-transfer of management talent, knowledge and capabilities to setup the right manager setting and also to avoid resistance between the teams and the staffs

· Investors and shareholders

· Should they use Jason deli’s supply chain?

 

4- cultural management

 

· Innovation area/ flexibility and adaptability

· Bureaucratic control or democratic

Refer to Figure 9.2 to compare each of the restructuring strategies.

b. Short-term outcomes that vary by strategy include:

i. Reduced labor costs

ii. Reduced debt costs

iii. Emphasis on strategic controls

iv. High debt costs

c. Long-term outcomes that vary by strategy include:

i. Loss of human capital

ii. Lower performance

iii. Higher performance

iv. Higher risk

What helps:

 

1. Obtain individual buy-in from leaders

2. Address the “me” issues

3. Identify integration risk factors

4. Avoid deadly sins of M&A’s

5. Learn from best practices

 

 

Finally you can write on the overview of the change management because you have more information about the overview.

 

1- overview of the change management

 

· introduce Subway and Jason dali background and statements

· What is Acquisition?

· Why Subway is offering Acquisition?

· Reasons for Acquisition and problem in achieving a successful acquisition

· Increasing market power because of competitive threat?

· Separate risk?

· Shift core business into different market? A more healthier customer?

· Learn and develop new capabilities